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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-04-07 Daily Xml
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LYELL McEWIN HOSPITAL

Mrs REDMOND (Heysen—Leader of the Opposition) (14:19): My question is to the Minister for Health.

An honourable member interjecting:

The SPEAKER: Order!

Mrs REDMOND: When the government announced—

Members interjecting:

The SPEAKER: Order! Members on my right will behave.

The Hon. A. Koutsantonis interjecting:

The SPEAKER: Order, minister for corrections! Leader of the Opposition.

Mrs REDMOND: My question is to the Minister for Health. When the government announced the $201 million Lyell McEwin stage 3 redevelopment, did the $201 million figure include non-building costs such as professional fees and market risk?

The Hon. J.D. HILL (Kaurna—Minister for Health, Minister for Mental Health and Substance Abuse, Minister for the Southern Suburbs, Minister Assisting the Premier in the Arts) (14:19): I can get some detailed information for the member in due course as to exactly what was covered in that figure, but traditionally, as I said to the house yesterday, when the government announces a cost for the construction of a facility, whether it is a hospital, a school, a prison, a railway line, or any of these things, which is procured in the traditional way, what we are really talking about is the design and construction costs. If we say it is a $100 million project, that is design and construction.

What we do not include is the cost associated with all the other costs that will come into account in due course, for example, the cost of the finance, that is, going into the marketplace to borrow the money and then having to pay that back over time. That is usually brought into the books of Treasury, as I understand it. When we give that initial figure we do not take into account how much it costs to repair that building, the life cycle costs of that building. We do not do that. That is how we traditionally procure.

When we procure through a PPP arrangement, of course, all those matters are brought to the accounts at the very beginning and so we know the life cycle costs, whether it is financial, transactional and so on. So, all of those things are brought into account, but in relation to the Lyell McEwin, without checking exactly, I imagine it was a design and construction element, but if there is anything in addition to that I am happy to find out for her.

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